Insurance statutory reporting – May 2017
KPMG summarizes new and revised statutory accounting standards for 2016 and 2017 financial reporting by insurance companies. This follows the discussions and new guidance adopted by the NAIC at its 2017 Spring Meeting.
NAIC 2017 Spring Meeting
Effective for 2016 reporting includes:
- Guidance for management’s responsibility to perform going concern analyses and disclosures
- Clarified reporting for fees paid or incurred by insurers to collect salvage and subrogation
- Clarified scope of disclosures for balance sheet values of Subsidiary, Controlled and Affiliated Entities (SCAs) and NAIC information in response to the SCA filing
- Clarified guidance for prepayment penalties.
Effective for 2017 reporting includes:
- Money market mutual funds reclassified to cash equivalents and reported at fair value
- Enhanced disclosure for repurchase and reverse‑repurchase agreements
- Discounting of guaranty fund assessments from insolvencies of insurers that wrote long-term care contracts
- Disclosures about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses
- Securities Valuation Office (SVO) designated bond Exchange Traded Funds (ETFs) removed from the definition of a bond and provided separate accounting guidance for the use of systematic value for these instruments